Market research firm Rho Motion reported that sales of fully electric and plug-in hybrid cars increased 35% globally in October compared to the same month the previous year, with China accounting for a 54% increase in sales. Data manager Charles Lester told Reuters that although European sales increased by just 0.8%, they were up on an annual basis for the second consecutive month, and the research group anticipates a strong year-end in the region.
High production costs, navigating the transition to electric vehicles, and a flood of cheaper cars from Chinese competitors are some of the issues facing the European auto industry. Volkswagen (VOWG_p.DE), the largest automaker in Europe, announced plans to close at least three German factories in October.
According to Rho Motion data, 1.72 million EVs—whether completely electric or plug-in hybrids—were sold globally in October. A record 1.2 million cars were sold in China.
While EV sales in Europe hit 0.26 million, up 14% from September but slightly up on the year, EV sales in the US and Canada increased 11.4% to 0.16 million. Sales in the rest of the world rose by 10.9%.
Rho Motion said in a statement that “as it enters the final two strong automotive sales months of the year, the Chinese EV market shows no signs of slowing down.” November and December are typically seasonally strong months, according to Lester.
According to him, price reductions may result from the EU’s carbon emission reduction targets for the upcoming year, as manufacturers seek to increase EV sales in order to fulfill the targets and stay out of trouble.
The domestic EV leader BYD (002594.SZ) led China’s passenger car sales, which increased 11.2% year over year in October, according to figures released last week by the China Passenger Car Association.